M&T Bank’s stock has been downgraded from a hold rating to a sell rating by Wall Street Zen, as reported on January 16, 2024. This marks a shift in sentiment toward the bank, with multiple analysts recently adjusting their outlook on the company’s shares.
Analysts from various financial institutions have provided differing perspectives on M&T Bank (NYSE: MTB). The Royal Bank of Canada raised its price target for M&T Bank from $210.00 to $220.00, maintaining an “outperform” rating. In contrast, Evercore ISI downgraded the stock from “outperform” to “hold” while increasing its price objective from $210.00 to $225.00. Cantor Fitzgerald also raised its target price, from $228.00 to $238.00, assigning an “overweight” rating in their latest report.
Additionally, Keefe, Bruyette & Woods adjusted their target price from $220.00 to $230.00 and maintained a “market perform” rating. Meanwhile, Piper Sandler increased their price target from $225.00 to $235.00. Currently, one analyst rates the stock as a Strong Buy, eight analysts have issued Buy ratings, eleven have assigned a Hold rating, and one analyst has a Sell rating. According to MarketBeat.com, M&T Bank has an average rating of “Hold” and an average price target of $224.29.
Recent Earnings and Dividend Announcement
M&T Bank recently reported its quarterly earnings, revealing an earnings per share (EPS) of $4.72 for the quarter ending January 16, 2024. This result surpassed analysts’ consensus estimate of $4.47 by $0.25. The bank’s revenue for the quarter was $2.48 billion, slightly above the expected $2.47 billion. The company’s net margin stood at 21.55%, with a return on equity of 10.94%. In the same quarter last year, M&T Bank reported an EPS of $3.77.
The bank also announced a quarterly dividend of $1.50, distributed on December 31, 2023, to shareholders recorded on December 1, 2023. This dividend reflects an annualized amount of $6.00 with a yield of 2.8%. The ex-dividend date for this payment was December 1, 2023, and M&T Bank’s dividend payout ratio is currently 35.19%.
Insider Transactions and Institutional Holdings
In insider news, Director John P. Barnes sold 17,866 shares of M&T Bank on January 22, 2024, at an average price of $220.81, totaling approximately $3.94 million. This transaction was publicly disclosed in a filing with the SEC. Additionally, Executive Vice President Christopher E. Kay sold 5,250 shares on November 26, 2023, at an average price of $191.70, amounting to around $1.01 million. Following this sale, Kay retained 5,501 shares valued at approximately $1.05 million, indicating a significant reduction of 48.83% in his holdings.
Over the past ninety days, insiders have sold a combined total of 29,116 shares valued at approximately $6.09 million. Insiders currently hold 0.53% of M&T Bank’s stock.
Institutional investors have also been active, with several hedge funds increasing their positions in M&T Bank. Golden State Wealth Management LLC raised its holdings by an impressive 2,214.3% in the second quarter, now owning 162 shares valued at about $31,000. Bank of Jackson Hole Trust increased its position by 342.9% in the third quarter, holding 155 shares worth $31,000. Other firms, such as Triumph Capital Management and Twin Peaks Wealth Advisors, have also made new investments in M&T Bank.
Currently, institutional investors and hedge funds own 84.68% of the company’s stock, reflecting strong institutional support for M&T Bank as it navigates the evolving financial landscape.
